2018 has rolled around and perhaps it isn’t all that surprising that the money-makers this year are all cities that have attracted a team of millionaires or millenials ready to start a business in otherwise quiet cities, or hop on a startup’s established bandwagon.
San Jose, California
I have to agree with Forbes – San Jose’s growth is highly anticipated, and makes a lot of sense. Home to Silicon Valley, the city is teeming with new technology, startups, and young energy. The city is by no means overflowing; in fact, there are new employment opportunities opening up at an impressive rate, and they are paying extremely well. According to Forbes, Zillow claims that home value increased by 17.4% last year and continues to rise from a median of $1.13 million. What is most attractive about San Jose is the fact that job opportunities, salary, and home value are growing in conjunction with each other, meaning there are a plethora of people who can afford the rising home value, thanks a Glassdoor-predicted 70,376 available jobs. The city’s growth in unparalleled by any other of the U.S. metropolises.
Beside the Puget Sound, lies a city with steady and reliable growth, a burgeoning arts and culture scene, and promising plans for the future. Nestled safely in the hands of the superpower Amazon, Seattle burst into the elite real estate scene with a sudden growth of job opportunity. While Amazon’s office growth may be taking up quite a substantial square footage, its expansion is also attracting quite the influx of wealthy residents. The ongoing project to construct Amazon biospheres, although not meant for the general public, are attractions nonetheless to the city itself and to future Amazon employees. The city is devoted to being a hub for all socioeconomic classes – it has made an effort to provide affordable housing for those citizens who do not benefit from the highest income bracket. Currently, there are about 102,212 employment opportunities, and the city promises to keep on growing.
Although Austin may not be sprinting to new heights this year, the technology-saturated city is surely reliable when it comes to real estate in 2018. One of Austin’s attractions is the picturesque Rainey Street lined with old buildings, restaurants, and clubs, and the city actually has grand plans to build up its appeal even more. Along the charming streets will tower residential skyscrapers with priceless views of the surrounding area. The additional housing is necessary — Austin’s tech scene is Millennial-friendly and so are its outdoor attractions and music culture. According to Curbed, the city has taken a minor break from its previous growth spurt, but is still steadily growing in job opportunity by 3%.
Brooklyn, New York
NYC is arguably the most attractive urban environment in the U.S. It has suffered a loss in real estate in recent years, bearing a blow of sinking home values and a lack of buyers for generally expensive properties. That being said, NYC consistently collects home-buyers looking for smart investments, and while the city is still growing although not at a preferred rate, the borough of Brooklyn has made a dramatic entrance yet again. According to the New York Times, home value in Brooklyn has risen 2.7%. The growth isn’t exceedingly impressive, but the increasing interest in properties despite this fact, is definitely a positive sign. Location, location, location, they say, and Brooklyn is a prime locale, full of artistic development, a young resident population, and NYC professionals.
A final note of advice:
When searching for investments this year, be sure to pinpoint the environments that are particularly enticing for tech startups.
According to Samantha Sharf of Forbes, even if an area isn’t currently booming, keep an eye out for steady if not impressive population and job opportunity growth, because there is sure to be a boom in the future, and you’ll be there before anyone has paid too much attention.
The best investments often stem from intuition – if a city has potential and is simply attractive, its current situation just doesn’t matter as much as its undeniable potential.